The Shape of Temptation: Implications for the Economic Lives of the Poor

Published By: BREAD on eSS | Published Date: April, 13 , 2010

This paper argues that the relation between temptations and the level of consumption plays a key role in explaining the observed behaviors of the poor. Temptation goods are defined to be the set of goods that gen- erate positive utility for the self that consumes them, but not for any previous self that anticipates that they will be consumed in the future.

Author(s): Abhijit Banerjee, Sendhil Mullainathan | Posted on: May 13, 2010 | Views(1413) | Download (919)


Member comments

Submit

No Comments yet! Be first one to initiate it!

Creative Commons License